Medicare has taken an aim to reward nursing homes based on their quality of care rather than quantity, and to penalize the homes that fall short. The recently implemented Skilled Nursing Facility Value-Based Purchasing Program (SNF VBP) will redistribute funds to 14,959 skilled nursing facilities across the nation, based on how many nursing home residents are readmitted to a hospital within 30 days of discharge. While the SNF VBP financially encourages quality care, there is concern that nursing homes are now more reluctant to send ill patients to the hospital in order to dodge penalization.
According to CMS data analyzed by Modern Healthcare, approximately 73% of skilled nursing facilities were financially penalized in 2018, while a mere 27% received bonuses.
A nursing home may receive a deduction in funds as severe as 2%, and a bonus as high as 1.6% in Medicare Part A payments. Nearly 20% of skilled facilities received the maximum 2% pay cut, and only 3% of facilities received the full 1.6% bonus.